146 million Switch 1 is a huge market, seems like crossgen would be best for max profits for Nintendo, a couple years at least until switch 2 user base is significant?
that's one way to think about it.
But I don't think Nintendo thinks like that.
If they had great new game ideas still for the current system then they wouldn't be coming out with a new system.
And Nintendo wants to sell you the new system once they've decided a new system is warranted. They want consumers to see the new system allows and is required to play new games and experiences.
To also put those games on the Switch would be saying keep your old system you don't need a new one. Mixed messaging.
IT also creates more work for each title going forward. And ideas for new games on the new system will be restricted to also needing to work on the old system.
Nintendo thinks a little differently and more longer term in my view. I always think of the golden goose fable. YOu get more money in the long run by not killing the goose.
Last, customers too are ready for the new system. Switch software sales peaked a few years ago.